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Item No. 6A
<br />Meeting Date: May 25th, 2000
<br />Type of Business: EB
<br />EB: EDC Business
<br />IN: Informational Item
<br />of Mounds View Staff Report
<br />To:
<br />Economic Development Commission
<br />From:
<br />Aaron Parrish, Economic Development Coordinator
<br />Item Title/Subject:
<br />Tax Increment Finance Policy Revisions
<br />Date of Report:
<br />May 3, 2000
<br />Background:
<br />At the April meeting, the Commission examined a variety of alterations to Mounds View's Tax
<br />Increment Finance policy. Additions to the policy are highlighted with bold text and are contained
<br />within sections V, VI (new section), VII, and IX. In addition, I have made some minor formatting
<br />changes.
<br />Above and beyond the aforementioned changes, I have identified some additional changes that the
<br />EDC might consider. In particular, the Application Proposal Review Worksheet, section XI, has
<br />been reevaluated to include:
<br />• Item 6: Project size: The square footage for each category has been reduced in the following
<br />manner:
<br />Previous
<br />Proposed Modification
<br />120,000+
<br />100,000+
<br />100,000+
<br />80,000+
<br />80,000+
<br />60,000+
<br />60,000+
<br />40,000+
<br />50,000 or less
<br />40,000 or less
<br />• Item 9: Real Estate Taxes: Criteria for taxes to be collected has been reduced. The following
<br />table is illustrative:
<br />As discussed in the previous staff report, the evaluation tool contained within our TIF policy is based
<br />on a model developed by the City of Elk River. Since a majority of Elk River's projects involve the
<br />development of vacant land, they can expect projects with higher square footages and tax
<br />collections. Like many redeveloping communities, the projects undertaken in Mounds View are
<br />typically smaller in size and scope. Accordingly, the proposed modifications are an attempt to
<br />parallel actual development based on existing constraints.
<br />Previous
<br />Proposed Modification
<br />$150,000
<br />Valuation =
<br />$3,600,000
<br />$120,000
<br />Valuation =
<br />$2,900,000
<br />$100,000
<br />Valuation =
<br />$2,400,000
<br />$80,000
<br />Valuation =
<br />$1,950,000
<br />$75,000(Valuation
<br />=
<br />$1,800,000
<br />$60,000
<br />Valuation =
<br />$1,450,000
<br />$50,000
<br />Valuation =
<br />$1,230,000
<br />$40,000
<br />Valuation =
<br />$1,000,000
<br />$25,000
<br />Below $25,000
<br />Valuation =
<br />Valuation =
<br />$640,000
<br />$640,000
<br />$20,000
<br />Below $20,000
<br />Valuation =
<br />Valuation =
<br />$500,000
<br /><$500,000
<br />As discussed in the previous staff report, the evaluation tool contained within our TIF policy is based
<br />on a model developed by the City of Elk River. Since a majority of Elk River's projects involve the
<br />development of vacant land, they can expect projects with higher square footages and tax
<br />collections. Like many redeveloping communities, the projects undertaken in Mounds View are
<br />typically smaller in size and scope. Accordingly, the proposed modifications are an attempt to
<br />parallel actual development based on existing constraints.
<br />
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